Bolsa Mexicana (BOLSAA) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached MXN 1.004 billion, up 6% year-over-year, with EBITDA of MXN 556 million, up 7%, and net income of MXN 385 million, up 8%; EPS was MXN 0.68, up 10%.

• Growth was driven by increased trading activity and higher assets under custody, partially offset by FX impacts from peso appreciation.

• CEO and management emphasized a focus on innovation, efficiency, technology upgrades, and expanding the customer base, including retail and international clients.

• June was the strongest month in 2024, supporting optimism for the second half.

• Expenses increased 5% year-over-year in Q2 2024, mainly due to personnel, technology, and consulting costs.

Financial highlights

• First half 2024 revenue was MXN 1.97 billion, flat year-over-year; EBITDA was MXN 1.108 billion, down 3%; net income was MXN 760 million, down 1%.

• EBITDA margin for H1 2024 was 56%; EPS for H1 was MXN 1.34, flat year-over-year.

• FX impact on EBITDA was MXN 3 million in Q2 and MXN 18 million for H1.

• Operating expenses for H1 2024 were MXN 984 million, up 3%, mainly due to wage increases and technology investments.

• Capital expenditures in technology reached MXN 104 million in H1 2024.

Outlook and guidance

• Management anticipates a more dynamic market in H2 2024, driven by stabilized FX, increased market activity, and continued strong trading and capital formation.

• No formal guidance provided; management will consider reinstating guidance in the future.

• Strategic focus on new services, market data, technology-driven growth, and rolling out Central Counterparty Services for fixed income.

• Ongoing investments in technology and infrastructure, with continued focus on operational efficiency and cost control.

• Anticipates further impact from FX volatility and interest rate environment on dollarized services and financial income.